Digital Initiatives to Modernize Public Distribution System (PDS) | 21 Nov 2025

Source: PIB

Why in News?

The Ministry of Consumer Affairs, Food & Public Distribution has launched a series of digital initiatives aimed at modernizing the Public Distribution System (PDS), improving supply chain efficiency, and enhancing transparency in food storage and logistics.

What are the Digital Initiatives Aimed at Modernizing the PDS?

• Bhandaran 360: It is a new Enterprise Resource Planning (ERP) platform for the Central Warehousing Corporation (CWC) that is linked to 35 external systems like ICEGATE, Food Corporation of India (FCI), and NAFED. 
  • It offers single sign-on, data encryption, real-time dashboards, and predictive analytics to standardize operations, and speed up decision-making.
• Smart EXIM Warehouse System: It streamlines container and cargo management by using AI, IoT, and FASTag, enabling real-time tracking, and quicker cargo movement.
• ANNA DARPAN: The Food Corporation of India launched ANNA DARPAN that brings together procurement, storage, movement, sales, quality checks, and contract monitoring into one integrated and reliable information system.
• ASHA (Anna Sahayata Holistic AI Solution): It is an AI platform that uses automated calls to collect feedback on ration entitlement, grain quality, and shop issues to manage grievances and improve oversight.
• Modern Steel Silos: A new Hub Silo Complex in Malout, Punjab, with a capacity of 1.5 lakh metric ton, has been inaugurated to minimize wastage and spoilage.

What is the Public Distribution System (PDS)?

• About: PDS is a food security system under the Ministry of Consumer Affairs, Food, and Public Distribution, providing essential food items and non-food items at subsidized rates.
• Target Beneficiaries: Under the National Food Security Act, 2013, Priority Households (PHH) receive 5 kg of foodgrains per person per month at highly subsidized rates- Rs 3/kg for rice, Rs 2/kg for wheat, and Rs 1/kg for coarse grains.
• Evolution of PDS in India: 
• Antyodaya Anna Yojana (AAY) provides 35 kg of grains per household per month to the poorest families.

• Commodities: Under PDS, wheat, rice, sugar, and kerosene are allocated to States/UTs, with some also distributing additional items like pulses, edible oils, iodized salt, and spices.

What are the Challenges Concerning PDS in India?

Mnemonic - FAIL

• F - Faulty Targeting: The PDS’s Below Poverty Line (BPL) criteria leave out many vulnerable groups, so 12% of poor households miss out, while some Above Poverty Line (APL) households and ghost cardholders benefit.
• A - Accessibility Issues: Storage capacity is concentrated in procuring states like Punjab and Haryana, causing shortages in consuming states such as Rajasthan and Maharashtra, while bureaucratic delays worsen regional disparities, especially in remote areas.  
• I - Inefficiency and Quality Gaps: Food grains are often rotten, infested, or impure, causing spoilage (over 62,000 tonnes in 2020), and the focus on rice and wheat overlooks malnutrition and nutritious local crops like millets.
• L - Lack of Awareness & Redressal: Many beneficiaries, especially illiterate ones, lack knowledge of their entitlements, and weak grievance redressal leads to denied or delayed rations.
  • World Bank and Right to Food Campaign reports highlight Aadhaar-related exclusions due to poor grassroots accountability.

What Reforms are Required to Improve the Efficiency of PDS?

Mnemonic - GROW

• G - Grain Supply Modernization: Phase out traditional godowns and expand modern steel silos to reduce post-harvest losses and improve grain quality. 
  • Use the PM Gati Shakti National Master Plan to optimize the food logistics network, minimizing transport time and cost.
• R - Real-Time Digital Integration: Integrate Bhandaran 360, ANNA DARPAN, and ASHA with state PDS databases and One Nation One Ration Card (ONORC) system to create a unified system for real-time tracking of foodgrains and identifying bottlenecks from central warehouses to Fair Price Shops (FPS).
• O - Optimized Last-Mile Delivery: Expand ASHA to send voice alerts on entitlements and FPS timings, with automatic escalation of unresolved grievances. 
  • Use GPS-enabled, tamper-proof seals on foodgrain trucks for real-time tracking and pilferage prevention.
• W - Wider & Nutritious Food Basket: Diversify the PDS food basket with millets, pulses, edible oils, and fortified grains to combat malnutrition. 
  • Promote localized procurement of regional crops and involve women’s SHGs in supplying nutritious foods.

Conclusion

The recent digital reforms in PDS mark a significant shift towards a modern, data-driven system. Sustained focus on last-mile delivery and nutritional diversification is crucial for ensuring genuine food security.